Finding 479057 (2023-001)

Material Weakness
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-07-22

AI Summary

  • Core Issue: The District failed to maintain adequate documentation for one contract, violating procurement standards.
  • Impacted Requirements: Compliance with 2 CFR sections 200.317-326, which mandate detailed records of procurement history.
  • Recommended Follow-Up: Ensure documentation is complete and monitor adherence to procurement policies to prevent future issues.

Finding Text

U.S. Department of Treasury passed through Utah Governor’s Office of Economic Opportunity 2023-001 - Procurement and Suspension and Debarment Program Name of Federal Program (ALN Number): Coronavirus State and Local Fiscal Recover Funds (21.027) Criteria: Recipients of federal awards must follow the procurement standards set out at 2 CFR section 200.317 through 200.326. They must use their own documented procurement procedures, which reflect applicable State laws and regulations, provided that the procedures conform to applicable Federal law and the procurement requirements identified in 2 CFR part 200. Recipients “must maintain records sufficient to detail the history of procurement. These records will include, but are not necessarily limited to the following: rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price” 2 CFR section 200.318(i). The District’s procurement procedures include the requirement to maintain sufficient documentation of the history of procurement. The District also has procedures to identify procurement transactions requiring competitive bids or proposals. Context and Condition: We selected two contracts to test for compliance with procurementstandards. Records for one contract lacked documentation sufficient to detail procurement history. Cause: The District did not follow its documentation policy for obtaining contracts or bids. Effect: A potential failure to conduct procurement transactions in a manner providing full and open competition exists. Questioned Costs: No costs were questionable Repeat finding: No Statistically valid: Yes Recommendation: We recommend the District ensure it 1) maintains documentation of the history of procurement and 2) monitors compliance with documentation requirements. Views of responsible officials: The District will review its procurement policies and internal controls and ensure timely action is taken when noncompliance is identified.

Corrective Action Plan

1) Management will review procurement policies with staff 2) Timely action will be taken to solicit bids for contracts that exceed District thresholds. 3) To ensure full and open competition takes place, management will routinely review current contracts and spending reports to identify expenditures that exceed the dollar amount threshold to individual vendors. Anticipated completion date: June 30, 2024 Responsible contact person: Emily Johnson

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1055499 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $827,888